United Therapeutics (UTHR 7.31%), a biotechnology company focused on therapies for rare and serious conditions such as pulmonary arterial hypertension, released its second-quarter results on July 30, 2025. The company posted record GAAP revenue and earnings, continuing its streak of double-digit GAAP revenue growth, but missed Wall Street forecasts. GAAP revenue climbed to $798.6 million, but came in $3.3 million below consensus expectations. GAAP earnings per share rose to $6.41, up 10% year over year, yet missed estimates by $0.88. The quarter featured robust product growth, especially in the Tyvaso franchise, but higher operating and one-time costs weighed on profits. Overall, the quarter reflected strong operational momentum but underscored some emerging risks around costs and the company’s reliance on a single product family.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $6.41 | $7.29 | $5.85 | 9.6 % |
| Revenue (GAAP) | $798.6 million | $801.87 million | $714.9 million | 11.7 % |
| Net Income | $309.5 million | $278.1 million | 11.3 % | |
| Operating Income | $364.5 million | $319.9 million | 13.9% | |
| Total R&D Expense | $134.0 million | $139.6 million | -4.0 % |
Source: Analyst estimates for the quarter provided by FactSet.
About United Therapeutics: Core Business and Strategy
United Therapeutics develops and markets specialty medicines for rare cardiovascular and cancer conditions. Its main focus is on treatments for pulmonary arterial hypertension, a type of high blood pressure affecting the lungs and heart. The company is also a pioneer in organ manufacturing and regenerative medicine, with ongoing clinical programs in 3D bioprinting and xenotransplantation.
Recently, United Therapeutics has centered its business on growing its core product portfolio, particularly therapies built on the drug treprostinil, delivered via inhalers, oral tablets, and injection. Success depends on product innovation, regulatory expansion into new uses, and protection of intellectual property. The company's push into novel organ manufacturing represents long-term diversification beyond pharmaceuticals.
Q2 2025 Highlights: Growth, Margins, and Pipeline Progress
The quarter saw continued double-digit revenue growth, marking the twelfth straight period of robust expansion. The Tyvaso product line -- which includes Tyvaso DPI (a dry powder inhaler for pulmonary hypertension) and nebulized Tyvaso (an inhaled formulation) -- delivered $469.6 million in combined sales. Tyvaso made up 58.8% of total company revenue. Tyvaso DPI revenue grew 22% year over year while nebulized Tyvaso climbed 10%. These gains were driven by more patients starting therapy and increased use for new medical indications, especially for serious lung diseases like interstitial lung disease.
Sales from Orenitram, an oral tablet for pulmonary arterial hypertension, rose 16% to $123.9 million, and Unituxin, approved for childhood neuroblastoma (a cancer therapy), increased 13% to $58.4 million. Remodulin, an injected drug for advanced pulmonary hypertension, declined 9% to $134.7 million, reflecting pressure from competing generics and a gradual shift toward easier-to-administer options.
The U.S. business remained dominant, generating $759.8 million in GAAP revenue, U.S. business revenue was up 12.5% from a year earlier. Revenue outside the United States was $38.8 million, compared to $39.7 million in Q2 2024. This continued trend points to strong commercial execution in the U.S. while international business remains a smaller contributor.
Cost pressures became evident this period. Selling, general, and administrative expenses (SG&A) surged 20% to $212.5 million due to higher staffing, legal expenses, and a notable $21.7 million impairment related to property, plant, and equipment. Research and development costs fell 4% to $134.0 million, mainly because Q2 2024 included larger up-front licensing payments that did not recur. Share-based compensation, the cost of employee stock awards, dropped 24%. Income tax expense and the company’s tax rate both edged higher, reflecting reduced benefits from share-based compensation.
Financial and Product Developments: Underlying Drivers and Events
Growth in the Tyvaso franchise continued to be broad-based, with volume increases as the main driver. The company attributes this to growing use among patients with pulmonary hypertension associated with interstitial lung disease and a modest boost from changes in U.S. pharmacy benefits under the Inflation Reduction Act. However, management noted that the benefit from federal policy changes is largely behind them, suggesting future tailwinds may be smaller.
Strong results in Orenitram and Unituxin offset the decline in Remodulin. The company pointed to higher prescription volumes and broader access as reasons for Orenitram's record sales. Remodulin’s decline is consistent with its more mature profile and competition from generic copies and new delivery technologies.
Pipeline activity continues at a rapid pace. TETON 2, a pivotal trial studying nebulized Tyvaso for treating idiopathic pulmonary fibrosis (a lung-scarring disease), finished enrolling patients and expects to report results in September 2025. Data from a second TETON study is due in the first half of 2026. These readouts could open new markets for Tyvaso products if successful. The ADVANCE OUTCOMES trial of ralinepag, an oral drug aimed at pulmonary arterial hypertension, is also expected to deliver data in the first half of 2026.
United Therapeutics is investing heavily in organ manufacturing, including 3D bioprinting and xenotransplantation (cross-species transplantation). Progress continues on the UKidney and UHeart projects, with new clinical trial applications expected within a year. The company views this area as a future growth pillar that aligns with its public benefit mission, although it remains pre-commercial.
Looking Ahead: Guidance and Watchpoints
The company did not provide formal financial guidance for the next quarter or for fiscal 2025. Management expressed confidence in sustaining double-digit revenue growth for both the Tyvaso franchise and the broader business "well into the future," supported by ongoing commercial and pipeline progress. Investors were told to expect updates from several late-stage clinical trials in the next 12–24 months, which could shift the business significantly if positive.
For upcoming quarters, investors should focus on several key themes: cost management, given the rise in SG&A this quarter; product concentration risk, as the Tyvaso franchise now makes up a majority of revenue; competition from new therapies and generics, especially for older products like Remodulin; and regulatory milestones, particularly trial results that could broaden the addressable market for Tyvaso and other drugs. The company's strong balance sheet -- with nearly $5.0 billion in cash as of June 30, 2025 and a new $1 billion share buyback program -- gives it flexibility to keep investing for future growth.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
